Commercial Bank posts $281m net profit in H1
Doha, July 24, 2013
Commercial Bank of Qatar has delivered a net profit of QR1.024 billion ($281 million) for the first half-year ended June 30, up 1 per cent against the same period in 2012.
Net profit for the second quarter was up by 2.5 per cent to QR518 million compared with the first quarter of 2013.
Abdullah Bin Khalifa Al Attiyah, chairman, said, “Commercial Bank, through both its retail and wholesale businesses, is positioned to capture the opportunities offered by Qatar’s rapidly changing economy as it transitions away from its traditional hydrocarbon-based growth.
“The Bank’s acquisition of Alternatifbank in Turkey underpins our strategy of diversifying our revenue streams and will facilitate growth for all of the banks in the Commercial Bank Alliance. We look forward to Alternatifbank making a positive contribution to Commercial Bank’s growth strategy.”
The bank completed its acquisition of a 70.84 per cent shareholding in Alternatifbank in Turkey from Anadolu Endustri Holding. The completion follows approvals from the regulators in Qatar and Turkey.
Hussain Al Fardan, managing director, said: “Commercial Bank delivered a solid set of results in the second quarter of the year continuing the growth seen in its underlying business during the first quarter. Despite the continued competitiveness of Qatar’s banking sector, the Bank improved its profitability in the second quarter by 2.5 per cent compared with the first quarter of the year, and has grown lending and deposits by 7 per cent and 13 per cent, respectively, since the end of last year.”
Net operating income increased by 14 per cent to QR1.6 billion in the first half of 2013, up from QR1.4 billion achieved in the same period in 2012.
Net interest income was QR914 million for the half-year ended June 30, 3 per cent lower than in the same period in 2012, reflecting growth in lending to customers offset by the impact of a reduction in the net interest margin which declined to 2.54 per cent in the second quarter of 2013 compared with 2.64 per cent for the first quarter.
Non-interest income was up 47 per cent to QR684 million in the first half of 2013 compared with QR464 million for the same period in 2012.
The bank’s total operating expenses were up by 11 per cent to QR 503 million in 2013 compared with QR455 million in the six months ended June 30, 2012.
The Bank’s net provisions for loans and advances were QR194 million for the six months ended June 30, 2013, up from QR32 million provided in the same period for 2012.
Loans and advances to customers were up by 18 per cent to QR 52.0 billion at June 30, 2013 compared with QR44.2 billion at the end of June 2012, and up by 7 per cent from QR48.6 billion at December 31, 2012.
Customers’ deposits were QR 46.9 billion at June 30, 2013, an increase of 16 per cent compared with the end of June 2012 and up 13 per cent since December 31, 2012, as the bank continues to manage its balance sheet to optimise its funding mix and reduce cost of funds.
The bank’s capital position remains strong with the capital adequacy ratio at 15.7 per cent as at June 30, 2013 compared with 17.0 per cent at the end of 2012, well above the Qatar Central Bank’s required minimum level of 10 per cent. - TradeArabia News Service